The US Dollar Index (DXY) continues to assert its strength, holding above the 103.50 mark, prompting economists at ING to scrutinize the outlook for the Greenback.
Forecasts Favor Dollar Gains Against European Currencies
ING anticipates the US Dollar to sustain its gains against European currencies in the upcoming days.
Today’s focus lies on the US economic calendar, featuring the Conference Board’s consumer confidence index for January and the JOLTS job opening data for December. Expectations are high for a robust consumer confidence index, reflecting the resilience of the job market. Regarding JOLTS job openings, a modest drop is projected, from 8790K to 8750K. Notably, any unexpected acceleration in the decline of job openings may impact the Dollar, given the significance some Fed officials attribute to JOLTS as a prime indicator of slack in the US labor market.
The Dollar’s Trajectory and the FOMC Meeting
Given subdued economic activity in Europe and persistent concerns in China, the DXY is poised to navigate within a range of 103.15-103.80 leading up to Wednesday’s Federal Open Market Committee (FOMC) meeting. ING economists are closely monitoring these factors to gauge the Dollar’s performance amid global economic dynamics.
As the Greenback maintains its position above 103.50, market participants await the outcome of key economic indicators and the subsequent impact on the Dollar’s trajectory in the days ahead.